Exploration of Business Failures & Survival of Small Independent Full-Service Restaurants in Egypt

Abstract

Small businesses play a vital role in the modern economy. They represent the main catalyst for economic development. However, small businesses fail at a high rate, especially small independent restaurants. Around 25% of small independent restaurants fail within the first year of operation, and around 60% do not survive for more than 3 years. The purpose of this multiple case study was to explore what strategies small independent full-service restaurant owners in the Al Rehab District, Cairo, Egypt implemented to sustain operations for more than 5 years. The restaurant viability model provided the conceptual framework for this study. The population of this study comprised of 14 owners of small independent full-service restaurant with less than 50 employees in the Al Rehab District, Cairo, Egypt, who sustained their businesses operations for more than 5 years. The data sources included semi structured interviews, restaurant review websites, and social media platforms. Based on methodological triangulation of the data sources, open coding, analyzing the data using qualitative data analysis software, and member checking, 5 themes emerged: restaurant infrastructure strategies, marketing strategies, operations strategies, management strategies, and emotive strategies. The potential implications for positive social change include increasing the success rate of small independent restaurant owners, which in return will create wealth for the owners, generate employment opportunities, increase the government tax revenues, and contribute to the growth of the Egyptian economy.